It’s Not Plain Who Runs the Train in Spain

Rail network liberalisation is currently an increasing trend worldwide as governments aim to introduce competition, improve services and reduce costs.

In Spain, the first phase of rail liberalisation was completed in 2020, while the second phase recently launched in October 2024.

Elsewhere in Europe, the introduction of Italo as a competitor to state-owned Trenitalia in Italy has helped improve service quality and lower fares. Likewise, France began opening its rail network to competition in 2021, enabling operators like Thello to run on high-speed routes, including Paris-Milan. Similarly, Germany’s partly liberalised network has seen private operators like FlixTrain offer low-cost alternatives to Deutsche Bahn (DB).

These reforms align with European Union directives aimed at creating a Single European Railway Area (SERA), promoting efficiency and enhancing customer choice.

Rail Liberalisation in Spain

Taking a closer look at this process, this year’s edition of Global Mobility Call explored how rail liberalisation in Spain has marked a transformative shift in the country’s transport sector, introducing competition into a market long dominated by the national rail operator, Renfe.

The first phase of Spain’s rail liberalisation was completed in 2020. It included the high-speed lines between Madrid and Barcelona, Madrid and Valencia and the Madrid-Seville/Malaga corridors. By opening the rail market to new operators, this move broke the monopoly held by Renfe, allowing companies like Ouigo (SNCF) and Iryo (a consortium involving Trenitalia, Air Nostrum and Globalvia) to enter the market.

At Global Mobility Call, Raúl Míguez, Deputy Director of the Presidential Office at Adif noted that Spain’s success in this process was facilitated by its advantage of having a dedicated, high-speed rail network that helped attract a range of operators. This highly efficient network spans over 4,000 kilometres in length and reflects a social demand for rail connectivity across Spain, thus incentivising operations.

Míguez emphasised that this infrastructure was previously underutilised, with significant available capacity, thus making Spain well-positioned to liberalise its railway market. To facilitate this, the infrastructure manager proactively introduced a framework capacity offer, clearly outlining the network’s available capacity and inviting operators to submit applications. This approach allowed Adif to establish rules and criteria in advance, ensuring proposals aligned with the network’s requirements.

The subsequent competition on the network has resulted in more diverse services, offering passengers more options in terms of price, schedules and comfort. With multiple operators vying for customers, there has also been a focus on enhancing service quality, such as better onboard amenities, more punctual services and greater ticketing options.

What’s more, competition among operators has driven down ticket prices, making rail travel more affordable for passengers. Indeed, a report by CNMC shows a decrease in ticket prices of 22% and 23% in the Madrid-Barcelona and Madrid-Valencia corridors respectively in the first quarter of 2023 compared to the same period in 2022. These fare reductions benefit budget-conscious travellers and encourage a modal shift from cars and planes to trains. Consequently, by encouraging more passengers to travel by train, this liberalisation is also supporting Spain’s environmental carbon reduction goals.

In recognition of these benefits, María Concepción Ortega, Vice-president of the Spanish Railway Association, Mafex, highlighted that the liberalisation of railway services has been “a lever for attracting and generating demand”. Notably, in less than two and a half years, the number of passengers travelling on the liberalised high-speed networks has increased by an additional 10 million, bringing the total number of annual passengers on these high-speed lines to 31 million.

Ortega highlighted that this growth has likewise resulted in increased activity in the industry through the production, maintenance and power of new rolling stock, as well as the expansion and growth of control centres and signalling systems and the adaption of signage and facilities at stations. Consequently, the entire value chain has benefited from this success, prompting investments and innovations that result in an increasingly solid economy.

In line with this prosperity, the rise in ridership has resulted in increased revenue on the network. Indeed, Ivan Santos, Deputy Director of the Railway Sector’s National Commission for Markets and Competition (CNMC) in Spain noted that, when comparing 2019 with 2023, Spain’s rail infrastructure manager, Adif has benefited from an additional 150 million EUR in revenue. This profit has in turn been invested into further improving the network, bringing additional benefits to passengers.

Phase Two

The second phase of Spain’s liberalisation process began in October 2024. Replicating the model of the first phase, it will include up to 72 new daily services. This phase will link Madrid with Galicia, Asturias and Cantabria, as well as with Cádiz and Huelva.

At the end of October, Adif published preliminary information on the capacity offer for these routes. This includes 32 train paths each day on the MadridGalicia line, 24 between Madrid-Asturias/Cantabria and 16 on the MadridCádiz/Huelva line. More detailed information will be published in the first quarter of 2025, including the complete capacity with available time slots, along with the process schedule and its rules.

As in the initial phase of liberalisation, Adif plans to establish multi-year framework agreements with successful operators. These agreements are expected to be signed by late 2026 and would enable companies to commence operations shortly thereafter.